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DAIRY INDUSTRY IN INDIA

Dairy activities have traditionally been integral to Indias rural economy. The country is the worlds largest producer of dairy products and also their largest consumer. Almost its entire produce is consumed in the domestic market and the country is neither an importer nor an exporter, except in a marginal sense Despite being the worlds largest producer, the dairy sector is by and large in the primitive stage of development and modernization. Though India may boast of a 200 million cattle population, the average output of an Indian cow is only one seventh of its American counterpart. Indian breeds of cows are considered inferior in terms of productivity. Moreover, the sector is plagued with various other impediments like shortage of fodder, its poor quality, dismal transportation facilities and a poorly developed cold chain infrastructure. As a result, the supply side lacks in elasticity that is expected of it. On the demand side, the situation is buoyant. With the sustained growth of the Indian economy and a consequent rise in the purchasing power during the last two decades, more and more people today are able to afford milk and various other dairy products. This trend is expected to continue with the sector experiencing a robust growth in demand in the short and medium run. If the impediments in the way of growth and development are left unaddressed, India is likely to face a serious supply demand mismatch and it may gradually turn into a substantial importer of milk and milk products. Fortunately, the government and other stakeholders seem to be alive to the situation and efforts to increase milk production have been intensified. Transformations in the sector are being induced by factors like newfound interest on the part of the organized sector, new markets, easy credit facilities, dairy friendly policies by the government, etc. Dairy farming is now evolving from just an agrarian way of life to a professionally managed industry the Indian dairy industry. With these positive signals, there is hope that the sector may eventually march towards another white revolution

India ranks first in the world in milk production, which has gone up from 53.9 million tonnes in 1990- 1991 to 127.9 million tonnes in 2012-13. The per capita availability of milk has also increased from 176 grams per day in 1990s to 290 grams per day in 2012-13. This is comparable with the world per capita availability of milk at 289.31 grams per day for 2012. This represents sustained growth in the availability of milk and milk products for the growing population of the country, apart from being an important secondary source of income for rural families. INDIAN DAIRY INDUSTRY IDA is been Established in the year 1948, it is the apex body of the dairy industry in India. The members are from the cooperatives, MNCs, corporate bodies, private institutions, educational institutions, government and public sector units. IDA functions very much closely with the dairy producers, professionals & planners, scientists & educationists, institutions and organizations associated with the development of dairying in India. The IDA since has a history of around six decades now, it has had the privilege of being headed by several Presidents and some of them were of national and international fame. The luminaries like Sardar Datar Singh, Dr. K.C. Sen, Dr. Z.R. Kothawalla, Dr. D.N. Khurody, Dr. V. Kurien, Dr. P. Bhattacharya were the past presidents of the IDA.

IDA has been providing a common forum to knit the dairy fraternity together and thus, over the years, it has emerged as the reigning czarina of information. The Association is managed by an apex policy making body called the Central Executive Committee (CEC). The CEC is headed by President and also been supported by two Vice-Presidents and 19 Executive Committee Members. The ongoing CEC is spear headed under the dynamic leadership of Dr. N.R. Bhasin, IDA has emerged as a platform for assimilation and dissemination of knowledge, as an important tool for policy making in the dairy sector, in India! Besides, the IDA, in the recent time, has also succeeded to focus itself at the national and international fora. The IDA organizes seminars, symposia and exhibitions on very much wide range of topics catering to various segments of professionals, scientists, institutions and organisations associated with the development of dairying in India. The IDA Head Quarter is located in Delhi and mainly the zonal branches are in Bangalore, Kolkata, Mumbai and Delhi. It has State Chapters at Gujarat (Anand), Kerala (Thrissur), Rajasthan (Jaipur), Punjab (Chandigarh), Bihar (Patna), Uttarakhand (Dehradun) and Haryana (Karnal). Transmission of technical/scientific information to all the members both to individual as well as institutions. This achievement is through publication of Indian Dairyman and Indian Journal of Dairy Science. Indian Dairyman, a monthly periodical, is a mouthpiece of the dairy industry, which besides publishing technical, scientific and trade-related articles, updates its members with latest information in dairy industry, including status in regard to domestic market prices. Indian Journal of Dairy Science is a bimonthly journal, which primarily covers research articles. Mainly to organize periodic Conferences, Seminars and Workshops on subjects of current interest. To maintain an inventory of the dairy scientists, research workers and dairy planners and professionals employed in the different sphere of the dairy industry including consultants in the field. To undertake the most of the consultancy projects both overseas as well as in the country whenever such a request is received from any central ministry of the Government of India. IDA being a representative body of the Indian dairy sector, do time-to-time, intervene on the policy issues like presentation of pre-budget memorandum, addressing issues arising out of the tariff rates, import/export, sanitary standards including PFA issues etc. It has also been trying to address the issues arising out of WTO/SPS etc. To IDA has got a fairly well equipped Library and maintains a Data Bank, which stores information on Indian Dairy Industry as well as International Dairy Industry. The objective IDA involves most of the advancement of dairy science and industry, farming, animal husbandry, animal sciences and its branches including dairy farming & research on breeding, and management of dairy livestock; and towards that end the association will seek. To provide opportunities for mostly dissemination and exchange of knowledge and ideas gained from experiments and experience through meetings, conferences, seminars and for collaboration between

persons and/or institutions interested in research & planning and those in production, processing and marketing. To practice and promote a high standard of objectivity, scientific expertise and technical proficiency. To encourage and promote also the scientific research and development related to dairy, dairy farming. To promote and participate in every way the rational and economic development of dairy science, industry and farming (as defined under the Rules & Regulations) in the country in association with cooperatives, industry, or any other organization, national or international, having similar aims and objectives. To assume good responsibility or functions when asked to do so, on behalf of Government towards the advancement of dairying. To collaborate with most of the societies, associations, or any other organization, national or international, having similar aims and to participate in meetings held in India or abroad centered around similar objectives. To promote good standards and to foster the growth of the dairy industry in general and for the purpose engage in consultancy activities, set up laboratories and do such like or other things as are necessary for the purpose. To adopt, as and when required, an appropriate logo for the Association and to permit the use thereof by its members on such terms as may deem appropriate. To promote dairying as a part of Animal Husbandry activity in particular and agricultural farming in general for the benefit of livestock and agricultural farmers. To organize training, exhibition mostly help in establishment of dairy farm as a part of Animal Husbandry activity for the benefit of agricultural, livestock & dairy farmers, in pursuance of objectives of the Associatio

SWOT ANALYSIS OF INDIAN DAIRY INDUSTRY


Strengths:
Demand profile: Absolutely optimistic. Margins: Quite reasonable, even on packed liquid milk. Flexibility of product mix: Tremendous. With balancing equipment, you can keep on adding to your product line. Availability of raw material: Abundant. Presently, more than 80 per cent of milk produced is flowing into the unorganized sector, which requires proper channelization. Technical manpower: Professionally-trained, technical human resource pool, built over last 30 years

Weaknesses:
Perishability: Pasteurization has overcome this weakness partially. UHT gives milk long life. Surely, many new processes will follow to improve milk quality and extend its shelf life.

Lack of control over yield: Theoretically, there is little control over milk yield. However, increased awareness of developments like embryo transplant, artificial insemination and properly managed animal husbandry practices, coupled with higher income to rural milk producers should automatically lead to improvement in milk yields. Logistics of procurement: Woes of bad roads and inadequate transportation facility make milk procurement problematic. But with the overall economic improvement in India, these problems would also get solved. Problematic distribution: Yes, all is not well with distribution. But then if ice creams can be sold virtually at every nook and corner, why cant we sell other dairy products too? Moreover, it is only a matter of time before we see the emergence of a cold chain linking the producer to the refrigerator at the consumers home! Competition: With so many newcomers entering this industry, competition is becoming tougher day by day. But then competition has to be faced as a ground reality. The market islarge enough for many to carve out their niche.

Opportunities:
"Failure is never final, and success never ending. Dr Kurien bears out this statement perfectly. He entered the industry when there were only threats. He met failure head-on, and now he clearly is an example of never ending success! If dairy entrepreneurs are looking for opportunities in India, the following areas must be tapped: Value addition: There is a phenomenal scope for innovations in product development, packaging and presentation. Given below are potential areas of value addition: o Steps should be taken to introduce value-added products like shrikhand, ice creams, paneer, khoa, flavored milk, dairy sweets, etc. This will lead to a greater presence and flexibility in the market place along with opportunities in the field of brand building. o Addition of cultured products like yoghurt and cheese lend further strength - both in terms of utilization of resources and presence in the market place. o A lateral view opens up opportunities in milk proteins through casein, caseinates and other dietary proteins, further opening up export opportunities. o Yet another aspect can be the addition of infant foods, geriatric foods and nutritionals. Export potential: Efforts to exploit export potential are already on. Amul is exporting to Bangladesh, Sri Lanka, Nigeria, and the Middle East. Following the new GATT treaty, opportunities will increase tremendously for the export of agri-products in general and dairy products in particular.

Threats:
Milk vendors, the un-organized sector: Today milk vendors are occupying the pride of place in the industry. Organized dissemination of information about the harm that they are doing to producers and consumers should see a steady decline in their importance. The study of this SWOT analysis shows that the strengths and opportunities far outweigh weaknesses and threats. Strengths and opportunities are fundamental and weaknesses and threats are transitory. Any investment idea can do well only when you have three essential ingredients: entrepreneurship (the ability to take risks), innovative approach (in product lines and marketing) and values (of quality/ethics). The Indian dairy industry, following its delicensing, has been attracting a large number of entrepreneurs. Their success in dairying depends on factors such as an efficient yet economical procurement network, hygienic and cost-effective processing facilities and innovativeness in the market place. All that needs to be done is: to innovate, convert products into commercially exploitable ideas. All the time keep reminding yourself: Benjamin Franklin discovered electricity, but it was the man who invented the meter that really made the money!